Pharma Sector Poised for Growth, But Margin Squeeze Looms
The Indian pharmaceutical and healthcare sector is projected to enjoy steady revenue growth in the first quarter of Financial Year 2026 (Q1FY26E). This positive outlook, however, is tempered by concerns over dwindling EBITDA margins.
A recent report by HDFC Securities highlights the anticipated revenue increase. However, the report also flags rising input costs and intensifying pricing pressures as key factors impacting profitability.
These pressures are expected to significantly affect the sector’s bottom line, despite the healthy revenue growth forecast. The report suggests a challenging period for companies navigating these competing forces.
This development holds significant implications for investors and policymakers alike. The need for strategic planning and government support to mitigate the margin squeeze becomes crucial to ensure the sector’s continued growth and contribution to India’s healthcare landscape. The upcoming months will be crucial in observing how companies adapt and navigate this complex scenario.
